SC Slams GST Defaulters for Misusing Bail to Skip Security Deposit

The Supreme Court of India, took serious note of Central GST defaulters misusing a legal loophole to avoid depositing bail-related security amounts. In a sharply worded order, the court criticised the increasing trend where accused individuals agreed before high courts to pay substantial sums for bail but later approached the Supreme Court to contest those very conditions as unreasonable.

Justice K V Viswanathan and Justice N Kotiswar Singh pointed to a case where an accused had secured bail from the Madras High Court by promising to deposit ₹2.5 lakh within 10 days, but later approached the Supreme Court claiming the condition was excessive and sought its removal. The court observed that such actions were attempts to backtrack on commitments and manipulate the judicial process.

The court stressed that although the right to liberty is fundamental, it had to be weighed against the integrity of judicial procedures. It observed “We strongly deprecate this practice...we have to be conscious of the sanctity of judicial process. We cannot allow parties to play tucks and tricks with the Court...we cannot permit parties to take advantage of a device resorted by them to secure orders of release".

The bench made it clear that attempts to manipulate conditions attached to bail, especially those involving financial deposits, were unacceptable and would not be entertained. The court stated that any objection to such conditions should be raised at the initial stage, and trying to avoid compliance later by claiming unfairness was not only improper but also dishonest.

At the same time, the court took into account the personal circumstances presented by the accused, including his pregnant wife and responsibility for his elderly father, and directed the high court to reconsider the matter and assess the need for interim relief if appropriate.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates